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March 29, 2016

Thailand/India

Thai Union Group To Buy 40% Stake in Avanti Feeds’ Shrimp Processing Plant

 

On March 29, 2016, Thai Union Group said it would spend $18.80 million to buy a 40 percent stake in Avanti Frozen Foods Private, Ltd., the shrimp-processing unit of India’s Avanti Feeds.  CP Aquaculture (India) and Avanti Feeds are the leaders in India’s shrimp feed marketTogether they sold an estimated 500,000 tons of shrimp feed in 2014.

 

The deal will help Thai Union offset the drop of shrimp production in Thailand, where output is still less than half the level seen in 2013, before the outbreak of early mortality syndrome.

 

India’s shrimp farming industry has not been affected by a serious disease outbreak.

 

Avanti Frozen Foods was set up in 2015 to focus on shrimp processing in India for export and domestic markets.  It is building a new plant at Yerravaram in the state of Andhra Pradesh, about 80 kilometers from its plant at Gopalapuram, to triple capacity to 75 tons a day from the current 25 tons a day.

 

Thai Union has said it was looking for further acquisitions to help it achieve a revenue target of $8 billion by 2020.  It scrapped a $1.5 billion acquisition of USA rival Bumble Bee Seafoods in December 2015.

 

Source: The Economic Times.  Thai Union Group To Buy 40% Stake in Avanti Feeds’ Shrimp Processing Unit.  March 29, 2016.

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